Harry Reid sets up Mel Watt vote

Senate Democrats and the White House are pressing for a vote this week on the nomination of Mel Watt to be the regulator of taxpayer owned mortgage giants Fannie Mae and Freddie Mac — in a bid to overcome Republican opposition that has left the pick in limbo for months.

On Monday, Senate Majority Leader Harry Reid took the procedural step necessary to hold a vote later this week, possibly Wednesday, to end debate on the nomination. Democrats will need 60 votes for Watt to clear this hurdle.

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Republicans have voiced opposition to Watt — a Democratic congressman from North Carolina — leading the Federal Housing Finance Agency, arguing someone with more direct expertise in housing finance markets should lead the regulator, not a politician.

Watt’s confirmation is considered a long shot and one industry source aware of the talks said Watt is still two votes short of 60. Sen. Richard Burr (R-N.C.) has publicly expressed support for Watt.

“He’s not going to get cloture,” said a GOP Senate aide. “He’s a handful of votes down.”

The White House is planning to reach out to moderate Republican senators in hopes it can close this gap, according to sources.

Sen. Susan Collins (R-Maine) — a potential Watt supporter — has not decided how she will vote, according to her office. Collins would like to see the Obama administration put forward a plan for what it wants to do with Fannie and Freddie, according to her spokesman.

The administration is also attempting to get the housing and banking industry to join its push. To this end, White House officials, including chief of staff Denis McDonough and National Economic Council Director Gene Sperling, met with executives on Monday and made the case for Watt.

“The administration officials made clear that the Watt confirmation is a top White House priority, that the Senate should move forward to confirm him this week, and that the president and his senior team will continue to push hard for Watt until he is confirmed and in place,” White House spokeswoman Amy Brundage said in a release following the meeting.

Homeowner advocacy groups have been pressing the White House to push Watt’s nomination because they argue the agency’s current leader, acting Director Ed DeMarco, has not embraced programs that could aid borrowers having trouble making mortgage payments.

Democrats argue that Republican complaints about Watt’s experience are unfounded and that he has shown both his interest and expertise in housing issues during his more than 20 years as a member of the House Financial Services Committee.

“Mel’s decades of experience with housing finance policy, and his proven ability to get results by working with colleagues, consumer advocates and industry leaders make him an ideal pick to lead the FHFA,” Senate Banking Committee Chairman Tim Johnson (D-S.D.) said in a statement.

Watt faces a time crunch of his own. If he feels his nomination is a lost cause and wants to run for reelection the filing deadline in North Carolina is Feb. 28.